Assessing Atresmedia Corporación de Medios de Comunicación, S.A.’s (BME:A3M) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess A3M’s latest performance announced on 31 December 2019 and evaluate these figures to its historical trend and industry movements.
How Did A3M’s Recent Performance Stack Up Against Its Past?
A3M’s trailing twelve-month earnings (from 31 December 2019) of €118m has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.5%, indicating the rate at which A3M is growing has accelerated. What’s the driver of this growth? Let’s take a look at if it is merely due to an industry uplift, or if Atresmedia Corporación de Medios de Comunicación has seen some company-specific growth.
In terms of returns from investment, Atresmedia Corporación de Medios de Comunicación has invested its equity funds well leading to a 27% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 9.8% exceeds the ES Media industry of 4.0%, indicating Atresmedia Corporación de Medios de Comunicación has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Atresmedia Corporación de Medios de Comunicación’s debt level, has declined over the past 3 years from 28% to 21%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 37% to 67% over the past 5 years.
What does this mean?
Though Atresmedia Corporación de Medios de Comunicación’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Atresmedia Corporación de Medios de Comunicación gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Atresmedia Corporación de Medios de Comunicación to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for A3M’s future growth? Take a look at our free research report of analyst consensus for A3M’s outlook.
- Financial Health: Are A3M’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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